The Corporate Europe is likely to watch a massive legal battle as the shareholders have filed a lawsuit against the Deutsche Telekom. As many as 16000 shareholders have claimed the lawsuit on Thursday this week. The charge claimed that Deutsche Telekom had overvalued its assets and concealed its plan to buy T-Mobile of USA in 2000. Such a class action is very rare in the corporate scenario in Europe. The Deutsche Telekom is likely to suffer a huge loss of nearly 80 million of euros. The class action case will be heard in Frankfurt.
It can be mentioned that separate European territory runs different legal framework in class cation cases. So, the EU is currently working to make a single class action law. However, the EU is facing some problems for that. One such problem is escalating legal fees. The EU is still uncertain about whether to use the opt-out or opt=in system. To conclude, the recent opinion from the individual consumer groups have suggested to vote for opt-in system.
Source: The Forbes